Overnight Finance: GOP chairman moves to censure IRS chief | Puerto Rico deal close? | Fed eyes June rate hike | Obama’s secret meeting with China’s richest man

HOW CONSERVATIVES FORCED LEADERSHIP’S HAND IN IRS IMPEACHMENT: In a private meeting this month, House Freedom Caucus Chairman Jim Jordan and conservative ally Rep. Mark Meadows presented two options to Speaker Paul Ryan: Hold hearings to impeach IRS Commissioner John Koskinen or we’ll force a vote on the matter on the House floor.

{mosads}Ryan’s response: Give me 24 hours to figure things out.

Days later, Judiciary Committee Chairman Bob Goodlatte (R-Va.) announced his committee would hold two hearings examining alleged abuses by the top IRS official, though Goodlatte completely avoided the word “impeachment.”

The Ryan-Jordan-Meadows meeting, confirmed by several GOP lawmakers and aides, sheds some light on why Goodlatte, with little advanced warning, agreed to hold IRS impeachment hearings despite reluctance from GOP leadership. The Hill’s Scott Wong tells us all about it: http://bit.ly/1WDi9TJ.

OVERSIGHT CHAIR OFFERS RESOLUTION TO CENSURE KOSKINEN: House Oversight and Government Reform Committee Chairman Jason Chaffetz (R-Utah) on Wednesday introduced a resolution to censure IRS Commissioner John Koskinen.

“I view censure as a precursor to impeachment as it allows the House the opportunity to formally condemn Mr. Koskinen,” Chaffetz said in a news release.

He told reporters Wednesday that as he’s studied impeachment, “what you see are dozens of censure motions that were introduced.”

“Very few of those actually came to a vote, but it does seem like a natural progression and step toward impeachment,” Chaffetz said.

The censure resolution urges Koskinen to resign or be removed by President Obama. It also recommends that Koskinen be required to give up his government pension and other benefits.

White House press secretary Josh Earnest on Wednesday chastised Republicans, saying they have significantly reduced the IRS’s budget. He reiterated the Obama administration’s support for Koskinen.

“John Koskinen has assumed a very difficult task,” Earnest told reporters. “That task has been made only more difficult by the false accusations of Republicans, and by the continued insistence of Republicans to cut the budget for the IRS.” The Hill’s Naomi Jagoda reports: http://bit.ly/1V9UwR5.

FINANCIAL SERVICES CHAIRMAN: IMPEACHMENT CASE IS ‘COMPELLING’: The chairman of the House Financial Services Committee said Wednesday that “a very good case” has been made to impeach Internal Revenue Service (IRS) Commissioner John Koskinen.

Rep. Jeb Hensarling (R-Texas), an ally of Speaker Paul Ryan (R-Wis.), said he hasn’t closely studied details but would be “very open” to proceeding with articles of impeachment against Koskinen.

“The case as I have seen it is a compelling one, but it’s not one I’ve studied closely, and should it become something that’s actually going through the House, I will give it the attention it deserves,” Hensarling said after a speech at the Capitol organized by the libertarian Cato Institute. I’ve got more on his comments here: http://bit.ly/1TI5E2C.

DEAL OR NO DEAL? HOUSE MOVES CLOSER TO PUERTO RICO BILL: House Republicans hope they are honing in on a Puerto Rico agreement, but aren’t willing to declare the job done just yet.

A spokesperson for Speaker Paul Ryan (R-Wis.) made clear Wednesday that relief legislation for the island is not yet finished, and there is no timeframe for action.

“Puerto Rico update: There’s no final product until a bill is introduced. And that timing is TBA,” tweeted AshLee Strong, Ryan’s press secretary.

That comment came shortly after House Natural Resources Chairman Rob Bishop (R-Utah) told reporters that a bill would be coming in short order.

“There will be a bill today. It will be dropped today,” he said. “We are moving forward. There’s a deal.”

Bishop and the committee have been hoping to get moving on the bill for weeks now, after a mid-April markup of the measure had to be cancelled at the last minute due to member concerns or unfamiliarity with the measure. The Hill’s Peter Schroeder and I try to make sense of it all: http://bit.ly/1staw58.

DEMS STILL NOT HAPPY WITH PUERTO RICO BILL: The head of the House Democratic Caucus said Tuesday that Republicans’ emerging proposal to help Puerto Rico weather its debt crisis will need significant changes before it gets support across the aisle.

“Some of the demands that Republicans are making are things that Democrats will not accept,” Rep. Xavier Becerra (D-Calif.) told reporters in the Capitol.

GOP leaders are fighting to cobble together a bipartisan coalition that can approve a debt-relief bill capable of winning President Obama’s signature. But Becerra singled out several issues he said are still outstanding in the eyes of Democrats, including an effort to lower Puerto Rico’s minimum wage and another to put bondholders ahead of the island’s pensioners when it comes to restructuring the debt. The Hill’s Mike Lillis explains: http://bit.ly/22gumx7.

FED MINUTES SHOW TALK OF RATE HIKE: The Federal Reserve is eyeing its June meeting for a potential rate hike, if the economy improves as expected.

Minutes from the central bank’s April meeting, released Wednesday, show that most Fed officials will be ready to hike rates in June, assuming the economy continues to show strength.

“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter … then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June,” the minutes stated: http://bit.ly/1ToeBAz.

HAPPY THURSDAY and welcome to Overnight Finance, where we’re once more dusting off the lonely spot on our desks for the Puerto Rico bill. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight’s highlights include an Obama meeting with China’s richest man, how you feel about the economy, a warning on policy riders from a Democratic Senate heavyweight and a hearing on the Consumer Financial Protection Bureau’s arbitration rule.

SHARE THIS: Join us 5/24 for State of the Sharing Economy: A Discussion on the Future of Cross-Border Commerce, featuring conversations with Rep. Darrell Issa (R-Calif.) and Navdeep Bains, Canadian Minister of Innovation, Science, and Economic Development. Topics of discussion include: New markets created by technological innovation, the global sharing economy, and policy & regulatory reforms to protect personal and proprietary data. Register here.

ON TAP TOMORROW:

• Information Technology and Innovation Foundation discussion on the “innovation box” tax proposal with Rep. Charles Boustany (R-La.), 8:45 a.m.
• House Financial Services subcommittee on oversight: hearing titled “Settling the Question: Did Bank Settlement Agreements Subvert Congressional Appropriations Powers?” 9:15 a.m. http://1.usa.gov/1ZLk0Dt
• Senate Banking subcommittee on securities: Hearings to examine improving communities and businesses access to capital and economic development, 10 a.m. http://1.usa.gov/1T9nP4N

WHITE HOUSE MUM ON MEETING WITH CHINA’S RICHEST MAN: The White House on Wednesday defended President Obama’s decision to meet privately with Jack Ma, China’s richest man and the founder of Chinese commerce empire Alibaba.

“Because it was a private lunch,” White House press secretary Josh Earnest said when asked why the meal was not listed on the president’s public schedule.

“It’s not uncommon for the president to have a private lunch with people he might find notable.”

The spokesman also defended the Obama administration’s efforts to boost transparency by publicly disclosing the White House visitor logs. “I think our approach to transparency is well documented,” Earnest said. Here’s more on their history from The Hill’s Jordan Fabian: http://bit.ly/207zVft.

RYAN: OVERTIME RULE IS ‘ABSOLUTE DISASTER’: House Republican leaders are slamming the Obama administration for expanding overtime pay to some 4 million Americans.

In a statement, Speaker Paul Ryan (R-Wis.) called the overtime rule an “absolute disaster” for the economy.

“This regulation hurts the very people it alleges to help,” he said. “Who is hurt most? Students, nonprofit employees, and people starting a new career. By mandating overtime pay at a much higher salary threshold, many small businesses and nonprofits will be unable to afford skilled workers and be forced to eliminate salaried positions, complete with benefits, altogether.”

The rule released late Tuesday makes anyone earning up to $47,476 a year, or roughly $913 a week, eligible for overtime pay.

In a concession to business groups, the administration reduced the threshold for overtime pay by about $3,000, down from the $50,440 cutoff initially proposed, but groups claim the policy change is still too dramatic an increase. The cutoff for overtime pay now stands at $23,660 per year. The Hill’s Lydia Wheeler walks us through the reaction and ramifications: http://bit.ly/1TZTJgh.

AMERICANS DOWN ON ECONOMY, UP ON THEIR OWN FINANCES: Americans are largely pessimistic about the economy in an election year but hold mostly positive views about their personal finances, according to a poll released Wednesday.

Forty-two percent of U.S. adults describe the economy as good, while two-thirds of adults say their own households are doing well, according to The Associated Press-NORC Center for Public Affairs Research poll.

Some voice worry on the economy as a whole: Just 1 in 3 adults say they’d be very confident they could find another job if they were laid off.

Partisan lines emerge in the polling data, with Republicans holding a much more negative view on the economy under President Obama: http://bit.ly/22gtUie.

HOUSE PANEL QUESTIONS CFPB ARBITRATION RULE: A House panel on Wednesday questioned whether the Consumer Financial Protection Bureau (CFPB) overstepped its bounds with a rule cracking down on waivers meant to keep financial institutions out of court.

The CFPB earlier this month proposed a rule banning forced arbitration clauses in contracts for financial products.

Such clauses prevent consumers from suing or joining class-action lawsuits against companies, a practice slammed by consumer advocates and championed by business groups.

The rule is based on a 2015 CFPB study, mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, that found consumers reaped much smaller rewards from arbitration than litigation.

But Republicans and arbitration defenders on Wednesday said the study’s findings didn’t support the CFPB rule and failed to meet Dodd-Frank’s standards for action. I’ll tell you how here: http://bit.ly/1Tks5LJ.

SCHUMER WARNS GOP OVER ‘POISON PILL RIDERS’: Sen. Charles Schumer (D-N.Y.) warned Republicans Wednesday that a push to add controversial policies to spending bills could shut down the appropriations process.

“The appropriations process is not the place to jam through ideological poison pill riders,” Schumer, expected to be the next Senate Democratic leader, told reporters during a conference call.

He added if Republicans try to attach “poison pill riders” to the appropriations bills, “we’re just not going to let the process go forward.” The Hill’s Jordain Carney tells us why: http://bit.ly/1WEuXIR.

DURBIN BLOCKS PUSH TO TIE GUN BILL TO SPENDING BILL: Sen. Dick Durbin (D-Ill.) blocked a GOP-push to link a larger fight over veterans in the FBI background check system to a spending bill currently before the Senate.

Sen. Chuck Grassley (R-Iowa) tried to bring up an amendment to block the Department of Veterans Affairs (VA) from using funds to report veterans to the National Instant Background Check System unless a court has determined that they are a danger to themselves or others.

“There appears to be a troubling trend within the VA,” Grassley said Tuesday. “The VA does not even determine whether veterans are a danger to themselves or others before reporting the names to that gun ban list.”

Grassley’s amendment was backed by GOP Sens. Joni Ernst (Iowa), Jim Inhofe (Okla.), Jerry Moran (Kan.) and Pat Roberts (Kan.): http://bit.ly/1V9ZJbt.

TRADE MINISTERS WORKING TO IMPLEMENT PACIFIC DEAL: Top trade officials said Tuesday that they are committed to implementing a sweeping Asia-Pacific agreement in their home countries.

The ministers from the 12 Trans-Pacific Partnership (TPP) countries said in a statement that they “are working diligently to complete their respective domestic processes.”

The trade ministers met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meet in Arequipa, Peru to review progress in approving the TPP agreement in each of their nations.

The ministers met for the first time since the 12 countries signed the TPP on Feb. 4 in Auckland, New Zealand.

Congress is unlikely to take votes on the TPP agreement until at least after the November elections amid anti-trade rhetoric on the presidential campaign trail from Donald Trump, Hillary Clinton and Bernie Sanders as well as close races in the House and Senate. Here’s more from The Hill’s Vicki Needham: http://bit.ly/1XmuVo2.

MANUFACTURERS FIGHT ANTI-TRADE TRAIL RHETORIC: A leading manufacturing group is launching a campaign to combat the onslaught of anti-trade rhetoric in the Republican and Democratic presidential races.

The National Association of Manufacturers (NAM) is using social media to dispel what it says are a slew of myths — from claims about China to the North American Free Trade Agreement (NAFTA) — being perpetuated by presumptive GOP presidential nominee Donald Trump and Democratic candidates Hillary Clinton and Bernie Sanders.

“Trade continues to be a key topic in the campaigns of both major parties,” wrote Linda Dempsey, NAM’s vice president of international economic affairs, in a blog post.

“Unfortunately, the most oft-repeated claims are flat out wrong and portend a dangerous path of retreat from the strong trade approach that has long been a powerful positive force for American workers, consumers and families,” she wrote. Vicki Needham has it all here: http://bit.ly/1R9nucN.

WYDEN RELEASES TAX AVOIDANCE PROPOSAL: Sen. Ron Wyden (D-Ore.) on Wednesday released a proposal aimed at preventing “sophisticated” taxpayers from avoiding paying taxes on investments.

The proposal would streamline the rules for taxing derivatives — contracts between parties about whether an investment’s value will increase or decrease over a certain time period.

The discussion draft is the latest tax proposal Wyden has unveiled aimed at making the tax code fairer. Last month, Wyden released a discussion draft to simplify the rules for how businesses write off the costs of capital investments.

“This proposal will help end the ‘Tale of Two Tax Codes’ and create one fair system with simple and straightforward rules that apply to everyone,” Wyden, the top Democrat on the Senate Finance Committee, said in a statement.

Currently, the tax rules for derivatives are complex and inconsistent, and some taxpayers have been able to take advantage of this to reduce the amount of taxes they have to pay, according to a summary of the proposal from Wyden’s office. Naomi Jagoda breaks down the rest: http://bit.ly/1quLAce.

SENATORS UNVEIL APPRENTICESHIP BILL: A bipartisan group of senators introduced legislation on Wednesday that would overhaul and expand the nation’s apprenticeship programs and better train workers for the changing global economy.

Sens. Patty Murray (D-Wash.) and Orrin Hatch (R-Utah) unveiled the legislation that aims to bolster the nation’s workforce development system through registered apprenticeship programs.

The measure — the Effective Apprenticeships Rebuild National Skills (EARNS) Act — would support pre-apprenticeship programs and new or expanding registered apprenticeship programs that provide nationally recognized credentials and would help with earning academic credit.

“To ensure that our workforce can truly lead in the 21st century global economy, we need our students and workers to be prepared to compete for high-skill, high-wage jobs in industries across the economy,” said Murray, the ranking member of the Senate Health, Education, Labor and Pensions Committee: http://bit.ly/207B9r5.

NIGHTCAP: Mark Cuban suggested Mark Cuban for Hillary Clinton’s running mate.

See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com; pschroeder@digital-staging.thehill.com, and njagoda@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill; @PeteSchroeder; and @NJagoda.